The continued strength of the labor market surprises some economists who expected job losses due to interest rate increases by the Federal Reserve to combat inflation.
The US economy added 12,000 jobs in October, well below what the market expected, and represents the smallest increase since December 2020. However, the US unemployment rate remained at 4.1% in October.
Until October, the average number of jobs gained per month in 2024 had been around 200,000, but the new numbers were affected by the Boeing strike and recent hurricanes.
This employment report is the latest economic news before the electionswhere many polls indicate that the economy is the main issue for voters. Economists expected temporary impacts from Hurricane Helene, Hurricane Milton and the 33 strike.000 Boeing workers in the Pacific Northwest would reduce employment figures in October. However, the number of jobs created was well below its estimate of 120,000 jobs for the month.
How will it impact the market?
The US labor market cools after years of robust growth. The October figure was the lowest since December 2020. The White House Council of Economic Advisers sought to downplay the employment figures by attributing them to “distorting factors” such as the hurricanes and the Boeing strike. “When the data signal is distorted, look at the underlying trend,” the council said in a blog post.
boeing
Reuters
Job creation unexpectedly accelerated in September, with the US adding 223,000 jobs (revised), the highest monthly growth since March 2024. Through October, the average monthly jobs gained in 2024 has been around 200,000.
Manufacturing jobs fell by 46,000 in October, likely due to the Boeing strike. The leisure and hospitality sector, usually a major source of new jobs, lost 4,000 positions. The Labor Department’s most recent report also reduced the August and September totals by 120,000 jobs.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
